A debt consolidation mortgage is a type of mortgage refinance that allows you to use valuable equity that you have in your home to consolidate all of your high-interest debts into one low-rate mortgage loan. In essence, the process allows you to merge all types of debt, including mortgages, credit card debts, credit lines, car loans, student loans, tax arrears, etc. into one loan that is backed by the equity in your property and is payable in easy and manageable terms.